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BJ's Wholesale Club to Open Fourth Distribution Center in Ohio

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BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) has announced plans to build its fourth ambient distribution center in Commercial Point, OH. It is set to open in early 2027. This strategic facility will support the company’s growing network, including eight existing clubs in Ohio, thus enhancing its ability to meet member demand across the region.

BJ’s Store Expansion & Growth Strategy

BJ’s Wholesale Club continues to strengthen supply chain as it expands the brands footprint nationwide. In the last five years, the company has aggressively grown its presence, opening more than 30 new clubs. The launch of its 250th club in Louisville, KY, on Jan. 31 will mark a significant milestone. 

The new distribution center in Ohio will play a crucial role in supporting BJ’s expanding network, ensuring that its clubs remain well-stocked with essential products. With advanced automation and increased logistical efficiency, BJ’s aims to provide members with a seamless shopping experience and unmatched service.

BJ’s Wholesale Club continues to drive growth by simplifying product assortments, enhancing marketing and merchandising capabilities, and expanding into high-demand categories. The company’s focus on building a strong own-brand portfolio and strengthening omnichannel capabilities has significantly boosted membership signups and renewals, leading to an 8.4% year-over-year increase in membership fee income in the third quarter of fiscal 2024. As a result, BJ’s membership has grown 35% in the last five years, reaching 7.5 million members.

BJ Stock Past Three Months Performance

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BJ’s New Distribution Center Boosts Supply Chain and Growth

BJ’s Wholesale Club is enhancing its supply chain with a 500,000-square-foot distribution center. The facility will feature advanced automation solutions from Swisslog, a leading provider of warehouse automation and software. These innovations include automated pallet storage, case-handling equipment and mixed-case pallet building, all designed to streamline club-friendly replenishment. Swisslog’s cutting-edge technology will help BJ’s maintain optimal inventory levels, supporting its expanding network of clubs with greater efficiency.

Located on a 125-acre site, the center allows for future expansion, further strengthening BJ’s logistical capabilities. Developed by VanTrust Real Estate, a firm with extensive experience in Ohio’s commercial space development, the new center will also bring significant economic benefits to Pickaway County and the Village of Commercial Point, driving regional growth and creating new business opportunities.

Wrapping Up: BJ’s Path to Continued Growth

BJ’s Wholesale Club is well-positioned for continued growth through strategic investments in its supply-chain, technology and membership offerings. The company’s new distribution center and ongoing store expansion support its ability to deliver exceptional value and convenience to members. By enhancing product assortments, strengthening own-brand portfolio and investing in omnichannel capabilities, BJ’s is ready to meet increasing demand and further solidify its competitive advantage in both physical and digital retail spaces.

In the past three months, this Zacks Rank #3 (Hold) stock has gained 16.1%, outpacing the industry and the S&P 500’s growth of 3.8% and 4%, respectively.

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